Oil prices continue to move up amid growing hopes that the US and some EU countries will begin using the COVID-19 vaccine as early as December this year. Investors are hoping that proactively combating the pandemic will help boost economic recovery and energy demand.
Back on Friday, it became known that Pfizer Inc and BioNTech have applied for permission from the US FDA to use the developed vaccine. Moderna also announced on the same day that it was close to obtaining a license to use the vaccine. Later, the head of the government operation "Warp Speed" said that a large-scale vaccination program for the population could begin on December 11. At the same time, many experts say that even with the advent of a viable vaccine, it will take a long time before production and logistics can fully recover. Only in this case can a stable tendency for the recovery of energy demand be formed.
Another driver for the growth of quotations is the reports that at the next meeting the OPEC countries may extend the current agreement to limit production for 3-6 months. As a reminder, the meeting of the energy ministers of the OPEC + countries will be held on November 30 - December 1.
Today the market will focus on economic news. Preliminary data on manufacturing and services PMI in the US and Europe will determine the further level of demand for risky assets.
The chart is dominated by bullish signals. The price went up from the flat at 41.10-42.10. The next target for buyers is the level 43.20. In the medium term, we can expect the growth of quotations above 44.00.
The main scenario is an increase to 43.20.
An alternative scenario is a decline below 42.10 and a fall to 41.10.
The current fundamental outlook is moderately positive. We consider longs in the area of the level 42.35.
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